Natural Resources committee  Yes, because now you need to—

Natural Resources committee  Several existing vehicles could be used. I'm thinking of the tax credits that have been given to the wind industry, to mining, and to oil development, for example. These are well-known mechanisms. You also have flow-through shares and the benefits that come with them, the tax consequences.

Natural Resources committee  We don't produce hydrogen. In our Montreal facility, we will be importing hydrogen that will be produced by Hydro-Québec in the adjacent electrolyzer that will be built.

Natural Resources committee  You're absolutely right. If you compare the cost of producing green hydrogen to the cost of producing hydrogen through steam methane reforming, there's at least a $2 difference per kilogram. Therefore, it's impossible to compete in the same market.

Natural Resources committee  Let's take ethanol as an example. In Canada, ethanol sells for 92¢ a litre, depending on current market prices. That includes a 25¢ fee required under the Clean Fuel Standard. In California, the price is $1.50. As you can see, there is still a difference.

Natural Resources committee  Yes, you understood it very well. The best way to proceed is to use a standard measure, which is life cycle analysis. This measures the carbon intensity of each molecule that goes into a final product. If you use green hydrogen made from biofuels and not grey hydrogen, which is traditionally used, that will affect the final value of the product and its carbon intensity.

Natural Resources committee  Thank you for the question and I can certainly answer it. It depends on the price you put on CO2 emissions. Life cycle analysis is used worldwide to determine the carbon intensity of each fuel. For example, I was saying that our project in Varennes would produce carbon-negative biofuels.

Natural Resources committee  I'm happy to attempt an initial response. Mr. Verlez can then take over. Clearly, a regulatory framework encourages good behaviour. Let's take the example of a big oil company in the Netherlands or the United States investing in production assets like low-carbon biofuel. If they were to use the technology in our Varennes project, they would produce a carbon-negative fuel.

Natural Resources committee  All right. Canada should adopt regulations that mandate GHG reduction measures in the transportation sector, establish a clear pricing system and set out penalties for non-compliance. In conclusion, I want to repeat what I said earlier: Canada can and must adopt ambitious GHG reduction measures and targets.

Natural Resources committee  Thank you, Mr. Chair. Good afternoon. My name is Dominique Boies, and I am the chief executive officer of Enerkem. Thank you for inviting me to meet with the committee today. I am pleased to contribute to your study on the future of the low-carbon and renewable fuels industry.